Potential home sellers hire real estate agents for one reason and one reason only. They want help selling their homes. They turn to a professional for advice and assistance. How much real estate agents cost depends on several factors.
People want to work with an agent they trust and who will do everything possible to make their house as desirable as possible. They want to know that their Realtor is truly looking out for them throughout the entire home-selling process.
This article will help home sellers understand that there are some who are truly exceptional and others that are not. The 80/20 rule is a common business principle that states 80 percent of a business’s work is done by 20% of its employees. In the real estate industry, however, the numbers are even more staggering. You might be surprised to learn that 93% of real estate transactions are completed by 7% of real estate agents!
This means that you might be disappointed if you choose the wrong agent to represent your interests. It is easy to pick the wrong agent when selling a house. After all, the odds are against you. Many sellers make the mistake of not understanding how to choose a real estate agent.
What real estate agents should do for home sellers
What can you do to increase your chances of choosing the right real estate agent for you? This is a simple question to answer. It is important to know what real estate agents should do for home sellers. If you do all these things correctly, your chances of being a happy camper will grow exponentially.
Finding the right agent is your job. You will be better equipped for making smart decisions if you understand the most important tasks a Realtor should be performing.
1. Price your home correctly
Properly pricing a home is the most important thing your realtor can do. Outstanding Real Estate agents resist the temptation to tell sellers what they want to hear just to make them happy and get their business. Real Estate agents of exceptional quality will price every home using their market knowledge and comparable sales.
An agent’s greatest skill is the ability to understand how to price a house. Agents who are able to sell homes at a reasonable price should be sought by smart sellers. The best agents are known for accurately pricing homes and not telling sellers what they want in order to get a listing. This is the worst thing a real estate agent can do, and it violates the code of ethics that they are expected to follow.
Pricing a home too high could cause serious problems for the seller. It may be avoided by buyers. If the house stays on the market for a long time, buyers may believe there is a problem with the home. You will eventually have to lower the price in order to remain competitive on the market, but the bad reputation will not go away.
Buyers will likely want a lower asking price after a while, even if what you have it listed for is reasonable. In the end, you might sell your house for a lot less than you would have if you had priced it properly form the start. Both the agent and seller suffer as a result.
Some agents may deliberately misrepresent a property’s value in order to gain business. Others lack the skills to accurately price a home. A great example of this is the Realtor who uses price per sq foot to determine value. If you don’t want your home to be priced incorrectly, don’t listen to the price per square foot as a way to accurately price a property. This indicator will only be useful if all the homes in the area are very similar. This is rarely the case.
2. The property should be marketed heavily
Your agent’s marketing skills should be exceptional. If necessary, your agent should provide great photos of the property by use of a professional photographer. Photography is an essential element in today’s home selling. It can be horrendous to see photos of clients’ homes posted by real estate agents. Even worse are the sellers who don’t bother to look at the listing!
Your home will be discovered online by potential home buyers. You will be lost if your photos are not good enough.
The best real estate agents should know how to spread the word using every marketing channel, not just the Multiple Listing Service. Your Realtor should have a website that attracts traffic and displays all of their properties. They should be using social networks to spread the word. These online options can take time to build, but they will help agents grow their businesses and sell their clients’ homes.
Marketing materials for real estate agents should be of the highest quality, including photographs, videos, and brochures. You will reap the benefits of hiring a qualified real estate agent who is knowledgeable about marketing.
3. Offer the seller a competitive commission structure
The modern real estate agent has significantly less work to do to sell your home. Sure, they have to list it on the MLS. They also have to work with a photographer and talk to inspectors and appraisers. The most work they actually do is negotiate with the buyer’s agent once and offer is made and advise you on what steps to take.
It’s not their fault, of course. With the advancement of certain technologies and the internet taking so much off the shoulders of the listing agent, there just isn’t as much work to do anymore. Technology has made the process of selling a home much simpler.
This is why the discount broker was born. With so much of the hard selling off their shoulders, discount real estate agents have more time to work with more clients at once. Doing so has enabled them to list, and therefore sell, more homes at the same time. Because of this, these Realtors are able to list homes for a far lower commission and still make plenty of money due to the volume of properties they are selling.
Discount brokers do the exact same job as traditional real estate brokers. They do so, however, for a much lower fee. Some brokers will list your home for 1 percent listing commission.
4. Communicate properly
Sellers need to be informed about the status of their property’s sale. Too many real estate agents only get clients and check-in once they have an offer. Agents should keep their clients informed about showing feedback and any other issues. Even if no offers are made, it is important for agents to keep in touch with their clients on a regular basis.
Agents who fail to communicate with their clients get a bad reputation. This is often the number one complaint about real estate agents. As a home seller, you can look for clues before you hire an agent. Are they quick to return calls and emails? Do they take the time to answer all of your question completely and thoroughly. Poor communication is never ok.
5. Be sure the buyer is qualified
Anyone can declare their interest in purchasing a home. Pre-approval for a loan is not possible for everyone. Good agents will ensure that buyers are preapproved and not prequalified. The difference in mortgage pre-qualification and pre-approval is significant. Pre-qualification doesn’t include an analysis of the buyer’s credit report, income, or employment. These are key factors that will determine whether they can obtain a mortgage.
Pre-qualification is usually not worth the paper it’s written on. Buyers who have submitted all necessary information, including credit reports, should be approved for loans. They should be approved to purchase your client’s house as long as there are no changes in their credit or financial situation.
6. Negotiate the best terms for their client
The best agents will fight for the best terms for their clients. This is what they’re paid to do. An excellent real estate agent will be thinking about their clients instead of their pockets. This is why you shouldn’t choose an agent who “needs to” make a sale. You will receive better advice if they aren’t worried about when the next sale is.
Agents who represent their clients will always strive to get the best terms possible for the transaction. Everything in real estate contracts can be negotiated. Good agents will, when necessary, counteroffer with a more favorable price for their clients. They are skilled at negotiating to help their clients make more money when selling their home.
Clients who need to make adjustments to closing times or contingency dates should negotiate these with their agent. An agent who is knowledgeable about the value of each element will be able to communicate that information. The best agents are always trying to give their clients the best possible service.
7. Participate in the home inspection
The seller client might not expect an agent to attend the inspection, but they should. Agents get to hear the inspector’s feedback firsthand by being present for the inspection. When asked if a listing agent should attend the home inspection, the answer is always yes!
The agent will keep track of all conversations and help the buyer to see the bigger picture. Some requests might be reasonable. Some requests may not be reasonable. A seller’s agent can protect the seller from unreasonable requests if they are present and can view everything in person.
The listing agent can inspect the property and listen to the problems firsthand. In the hope of getting a closing price concession, some buyers will exaggerate the issues in order to get repairs or a closing costs concession. The home inspection is often the first place to negotiate.
Do not be fooled by a real estate agent telling you that they should not attend because it creates too much liability. This is total nonsense! The only problem is when agents say or do things they are not supposed to. Agents can make themselves liable by speaking out of turn. An agent should not attend a home inspection as a second inspector, but only to observe and listen. That’s it! The real estate agent who thinks they know everything ends up being sued and losing.
8. Take part in the home appraisal
An experienced real estate agent will attend the appraisal so that they can answer any questions and ensure they are fully informed about the details of the property. An appraiser may need to get feedback from someone who is familiar with the property in order to complete their job. Any confusion should be clarified by your real estate agent. Your Realtor is often the best person to answer any questions from an appraiser.
The appraiser might be looking at all recent updates, as well as other improvements, made to the house. Major home updates can certainly impact the property’s value. Agents should always be aware of this. The appraisal’s outcome can be affected by updates.
9. Close All Loose Ends
It is a difficult task to sell a house. There are so many details to take care of. As an example, if the home inspection found a potentially damaged chimney, was a professional chimney sweep hired? This is why it is such a big selling point to use a Realtor. Agents need to manage all details for their clients as the closing approaches. Final water/sewer readings, smoke & carbon monoxide detector certificate, and other issues should be included in the package. Home sellers will appreciate their agent if there is less work for them to do.
It can be stressful to sell a house. But if you have a great agent who will take care of all the details, it can be a lot easier. You now know what to expect from your agent when you sell a house.
Summary of things to look for in a listing agent
These are the characteristics you should look when choosing a real estate agent:
- Honesty is the most important thing. Your needs should be considered before the Realtor’s.
- Professionalism. The agent you hire should be a reflection of you to all those they meet during the home-sale journey.
- Reasonable listing commission – Consider a discount realtor to help you sell your home while saving you thousands of dollars.
- Great communication skills – Does the agent keep in touch with clients?
- Strong negotiator. You want a tiger and not a pussycat.
- Creativity marketer – you don’t want an agent who does only the minimum. Do they have a complete marketing plan?
- Outstanding company and reputation – are the agents and the firms they work for considered leaders?
- Proven results and experience – Does the agent have the knowledge and expertise necessary to assist you in any unforeseen situations? Are they able to sell in all markets and not just those where homes are selling liek hotcakes?
Your success will skyrocket if you take the time and look for these things from a Real Estate agent.
